New product: Potential 6.1% pa, and the opportunity to kick out from year 3 even if the FTSE stays the same …
Most of the kick out investments currently available offer the opportunity to end early after 1 or 2 years. However, if you are looking to invest your money for longer, this new plan from MB might be of interest.
The UK Kick Out Plan Y3 60 has a maximum 5 year term but offers an early kick out from year 3 onwards. The plan will pay 6.1% for each year invested, provided the FTSE 100 Index at the end of each year is at or above its level at the start of the plan. That’s a minimum potential return of 18.3% at the end of year 3 if the conditions are met, or 24.4% at year 4, or 30.5% at the end of the final year. You would also receive a return of your original investment.
Should the FTSE be lower at the end of every year for the full five term, no growth return is achieved, and your original investment is returned unless the Index has fallen by more than 40%. If it has, your initial capital is reduced by 1% for each 1% fall, so your capital is at risk.
With the knowledge that your money will be invested for at least the medium term, and the combination of competitive returns and a lower capital at risk barrier, this plan could be an interesting option.
Potential Return: 6.1% for each year invested (not compounded), if the FTSE rises by any amount
Potential to mature early (kick out) each year from year 3 onwards
Capital At Risk Product – 60% barrier
Available for Stocks & Shares ISA, ISA Transfer and Direct Investments. Also available to businesses, charities, trusts and SIPP and SSAS pension schemes
Investment term: Maximum 5 Years
Arrangement fee applies
Minimum single investment: £5,000
Maximum ISA investment: £20,000
No maximum for ISA transfers and non-ISA investments
ISA Transfer Applications: 10 August 2021
Direct & ISA Applications: 24 August 2021
Reduced arrangement fee: For investments of £100,000 or more into this plan, processed through Fair Investment Company, your arrangement fee will be reduced to 2% of your original investment.
Important Information: This is a structured investment plan which is not capital protected and is not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.